Key News
Asian equity markets had a good day as Hong Kong outperformed while Mainland China and India were off.
The nattering nabobs of negativity are so focused on COVID’s spread in China they appear to be missing the Hong Kong market’s rebound. Top sectors in both China and Hong Kong were discretionary, staples, and communication! Notice how stable CNY has been? Its stability is a significant barometer of risk. Yes, our Chinese city mobility tracker shows declines in traffic and subway usage though several cities are showing stabilization. Interesting to see Hong Kong see a nice jump in volumes. The big news was the potential relaxation of inbound China quarantines occurring in early January to 0+3 (no initial quarantine followed by three days of hotel quarantine). Also, the CSRC stating its policy support for the real estate sector following the PBOC and State Council’s releases, and the WTO ruled in favor of China against the US in a trade dispute dating back to the previous administration. FedEx and Nike’s better than expected financial results were also a catalyst with the latter’s China revenue was off only -3% year over year.
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